Fed Interest Rates Hike Spur Crypto Market Liquidations Of More Than $330 Million
23 September 2022 - 3:00AM
NEWSBTC
The FOMC meeting held on Wednesday and its subsequent results
deeply affected the state of the crypto market. Given the large
swings in price during and after the meeting, liquidation volumes
had quickly risen across the market. Tens of thousands of traders
were caught in the crossfire in what has come out to be the largest
liquidation trend in the last few months. Crypto Liquidations
Reach $330 Million On Wednesday, the Fed had announced that it was
raising interest rates by another 0.75 points. This decision
directly impacted the crypto market as well as the broader macro
markets, causing the price of bitcoin to plummet about 8% before a
swift recovery. Related Reading: Bitcoin Dumps After Revisiting
June Lows, Where Does The Bottom Lie? The decline triggered massive
liquidations across the market. By Thursday, the total liquidation
in the crypto market had crossed $330 million, with more than
88,000 traders affected. Given the decline, long traders had
obviously suffered the most, but since the price had seen sharp
recoveries too, short traders were also hit heavily.
Liquidations cross $330 million | Source: Coinglass Of the $336
million in liquidations recorded in the last day, 58.96% were from
long traders, meaning $138.13 million were from short liquidations.
The largest single liquidation came from the Okex exchange, with a
single trade worth $3.13 million across the BTC-USDT-SWAP pair.
Ethereum Takes The Lead In recent times, the focus has been on
Ethereum after the digital asset had successfully upgraded from
proof of work to proof of stake. This increased attention has
amplified the performance of the cryptocurrency and its traders in
recent times as well. ETH liquidations made up almost half of the
$336 million in liquidations recorded across the crypto market in a
24-hour period. With 117.73K ETH liquidated, it came out to a
dollar value of $151.45 million during this time. Market cap at
$884 billion | Source: Crypto Total Market Cap on TradingView.com
In contrast, the leading cryptocurrency, Bitcoin, recorded a total
of 5.50K BTC liquidated during this time period for a total of
$105.31 million. This means that ETH liquidation volumes came out
to about 50% more than that of BTC. Related Reading: Prepare For
Volatility: Data Suggests Bitcoin Gets Chaotic During FOMC Meetings
XRP was another token that saw massive liquidations, although to a
lower extent compared to bitcoin and Ethereum. XRP saw $9.77
million in volume, while SOL and ETC reached $6.73 million and
%5.61 million, respectively. All other cryptocurrencies saw
liquidation volumes below $5 million. Featured image from The World
Economic Forum, chart from TradingView.com Follow Best Owie on
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